A recent report has revealed a $37-million operating budget shortfall for Winnipeg Transit, which is the second largest budget item for the City of Winnipeg after police services. This deficit has already resulted in service level reductions, impacting factors such as wait times and driver safety. The shortfall is attributed to a loss in revenue, with the pandemic exacerbating the situation by reducing ridership and fare revenue. The report also highlighted an increase in fare evasion, with estimates suggesting losses of up to $6 million from lost fares in a single year.
The report suggested a need for new funding sources to address the operating budget shortfall, such as implementing vehicle levies, off-street parking taxes, or Transportation Network Companies fees. These recommendations are based on successful measures adopted in other cities across Canada. However, the report also noted that all cities are struggling with operational costs, indicating a need for additional support from provincial and federal governments. Without external assistance, public transit in Winnipeg may remain in a precarious position.
The need for provincial and federal support was emphasized by various stakeholders, including the Amalgamated Transit Union president, the transit chair, and the transportation planning firm. Suggestions included the implementation of a national transit strategy at the federal level, which could divert revenue from carbon taxes to support public transit. However, only a small portion of tax revenue currently goes to cities, highlighting the need for enhanced financial assistance from higher levels of government.
Historically, the province has supported 50% of Winnipeg’s transit operating funds, but the report indicated that this support has decreased over time. While Budget 2024 has committed to increasing annual operating funds, specific details have not been disclosed. The lack of clarity regarding future funding has led to concerns about the sustainability of public transit in Winnipeg, with stakeholders calling for stronger commitments from all levels of government to address the ongoing budget challenges.
Various funding options were proposed in the report, such as vehicle levies and off-street parking taxes, which could help generate additional revenue for public transit. However, securing provincial and federal support is crucial to ensuring the long-term viability of public transportation in Winnipeg. Stakeholders stressed the importance of a coordinated effort among all levels of government to address operational funding gaps and enhance public transit services for residents. With the growing demand for sustainable transportation options, investments in public transit are essential to alleviate traffic congestion, reduce greenhouse gas emissions, and improve the overall quality of life for Winnipeg residents.
